EMC 2011 Annual Report Download - page 26

Table of Contents
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
This Management's Discussion and Analysis ("MD&A") of Financial Condition and Results of Operations should be read in conjunction with our
consolidated financial statements and notes thereto which appear elsewhere in this Annual Report on Form 10-K.
All dollar amounts expressed numerically in this MD&A are in millions.
Certain tables may not add due to rounding.
INTRODUCTION
We manage our business in two broad categories: EMC Information Infrastructure and VMware Virtual Infrastructure.
EMC Information Infrastructure
Our EMC Information Infrastructure business consists of three segments: Information Storage, Information Intelligence and RSA Information Security.
The objective for our EMC Information Infrastructure business is to simultaneously increase our market share, invest in the business and improve our
financial returns. During 2011, we continued to innovate and invest in expanding our total addressable market through internal research and development
("R&D") and our recent acquisitions to capitalize on the continued expansion of enterprise data. We have developed a product portfolio with customer's
current and future needs in mind which will continue to evolve as the largest transformation in Information Technology ("IT") history is creating enormous
opportunities in Cloud Computing and Big Data.
Cloud Computing leverages an on-demand, self-managed, virtualized infrastructure to deliver IT-as-a-Service in a more efficient, flexible and cost-
effective manner. While the fundamental transition to Cloud Computing architectures is gaining traction, customers are increasingly recognizing that their
ability to compete is tied to the efficiency, flexibility and agility of their IT operations and that transitioning to a cloud-based architecture will be a key
component to their success. We believe our offerings are well-suited to capitalize on this trend as it unfolds over the next several years. Big Data, which is a
primary contributor to the pace of overall data growth, refers to the large repositories of corporate and external data, including unstructured information
created by new applications (e.g. medical, entertainment, energy and geophysical), social media and other web repositories. With the investments we made in
2010 by acquiring Isilon and Greenplum, as well as our internally developed Atmos offering, we believe we are well-positioned in this market to continue
assisting our customers in storing, managing and unlocking the value contained within this information.
Our powerful go-to-market model, where we continue to leverage our direct sales force and services organization, as well as our channel and services
partners and service providers, positioned us well during 2011 to help customers transition to Cloud Computing and benefit from Big Data. Additionally,
momentum continues to build at VCE Company LLC, our joint venture with Cisco, and other investors VMware and Intel, as it becomes an important element
of our go-to-market model, with their Vblock converged infrastructure product for building out cloud data centers.
VMware Virtual Infrastructure
VMware's financial focus is on long-term revenue growth to generate free cash flows to fund its expansion of industry segment share and evolve its
virtualization-based products for data centers, desktop computers and cloud computing through a combination of internal development and acquisitions.
VMware expects to grow its business by broadening its virtualization infrastructure software solutions technology and product portfolio, increasing product
awareness, promoting the adoption of virtualization and building long-term relationships with its customers through the adoption of enterprise license
agreements ("ELAs"). Since the introduction of VMware vSphere in 2009, VMware has introduced more products that build on the vSphere foundation
including VMware vSphere 5 and a comprehensive suite of cloud infrastructure technologies, as well as VMware View 5. VMware plans to continue to
introduce additional products in the future. Additionally, VMware has made, and expects to continue to make, acquisitions designed to strengthen its product
offerings and/or extend its strategy to deliver solutions that can be hosted at customer data centers or at service providers.
On a consolidated basis, our vision, strategy and roadmap allowed us to leverage our strengths through 2011 and position us to capitalize on the
evolving trends of Cloud Computing and Big Data in 2012. As a result, we believe we will grow faster than the markets we serve in 2012 while
simultaneously investing in the business and growing earnings per share at a rate faster than the rate at which we will grow our revenue.
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